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Integrated Marketing Communications, Advertising, and Public Relations. Objectives. Define integrated marketing communications and explain how it relates to the development of an optimal promotional mix. Describe the communication process and how it relates to the AIDA concept.

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Presentation Transcript
  • Define integrated marketing communications and explain how it relates to the development of an optimal promotional mix.
  • Describe the communication process and how it relates to the AIDA concept.
  • Identify the elements of the promotional mix.
  • Name the three major advertising objectives and the two basic categories of advertising.
  • Identify the major advertising strategies and the process of creating an advertisement.
  • Describe the major types of advertising appeals, and discuss their uses.
  • List and compare the major advertising media.
  • Explain the roles of public relations, publicity, cross-promotion, and ethics in an organization’s promotional strategy.
  • Discuss the factors that influence the effectiveness of a promotional mix, and how marketers measure effectiveness.
  • Promotion - Function of informing, persuading, and influencing the consumer’s purchase decision
  • Marketing communications - Messages that deal with buyer-seller relationships
  • Integrated marketing communications (IMC) - Coordination of all promotional activities to produce a unified, customer- focused promotional message
importance of teamwork
Importance of Teamwork
  • Teamwork involves both in-house resources and outside vendors
  • IMC challenges the traditional role of the outside advertising agency
role of databases in effective imc programs
Role of Databases in Effective IMC Programs
  • The Internet allows companies to gather information faster and organize it easily
  • Direct sampling is a frequently used method to obtain customer opinions
the communication process
The Communication Process
  • Sender - Source of the message communicated to the receiver
  • Message - Communication of information, advice, or a request by the sender to the receiver
the communication process1
The Communication Process
  • An effective message does three things
    • Gains the receiver’s attention
    • Achieves understanding by both sender and receiver
    • Stimulates receiver’s needs and suggests appropriate methods of satisfying them
the communication process2
The Communication Process
  • AIDA - Steps through which an individual reaches a purchase decision: attention, interest, desire, and action
  • Encoding - Translating a message into understandable terms
  • Decoding - Receiver’s interpretation of a message
the communication process3
The Communication Process
  • Feedback-Receiver’s response to a message
  • Noise - Interference at some stage in the communication process
  • Channel-Medium through which a message is delivered
elements of the promotional mix
Elements of the Promotional Mix
  • Promotional mix - Subset of the marketing mix in which marketers attempt to:
    • Achieve the optimal blending of the elements of personal and nonpersonal selling to achieve promotional objectives
personal selling
Personal Selling
  • Interpersonal influence process involving a seller’s promotional presentation conducted on a person-to-person basis with the buyer
  • Oldest form of promotion
  • Currently, nearly 15 million people in the U.S. have careers in personal sales and related occupations
nonpersonal selling
Nonpersonal Selling
  • Advertising - Any paid, nonpersonal communication about a business good
  • Product placement - Marketer pays a motion picture owner a fee to display his or her product prominently in the film or show
nonpersonal selling1
Nonpersonal Selling
  • Sales promotion - Marketing activities that stimulate consumer purchasing and dealer effectiveness
    • Does not include personal selling, advertising, guerrilla marketing, and public relations
    • Trade promotion - Sales promotion geared to marketing intermediaries
nonpersonal selling2
Nonpersonal Selling
  • Direct marketing - Use of direct communication to a consumer or business recipient designed to generate a response in the form of:
    • An order
    • Lead generation
    • Traffic generation
nonpersonal selling3
Nonpersonal Selling
  • Public relations - Firm’s communications and relationships with its various publics
  • Publicity-Nonpersonal stimulation of demand for a good by unpaid placement of significant news
  • Guerrilla marketing - Unconventional, innovative, and low-cost techniques to get consumers’ attention
  • Relationship in which an organization provides funds to an event in exchange for a direct association with that event
  • Sponsor purchases:
    • Access to the event’s audience
    • The image associated with the activity
how sponsorship differs from advertising
How Sponsorship Differs from Advertising
  • Cost-effectiveness
  • Sponsor’s degree of control versus that of advertising
  • Nature of the message
types of advertising
Types of Advertising
  • Product advertising - Nonpersonal selling of a particular good or service
  • Institutional advertising - Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency
objectives of advertising
Objectives of Advertising
  • Informative advertising - Seeks to develop initial demand for a good, service, organization, person, place, idea, or cause
  • Persuasive advertising - Attempts to increase demand for an existing good, service, organization, person, place, idea, or cause
objectives of advertising1
Objectives of Advertising
  • Reminder advertising -Reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public
advertising strategies
Advertising Strategies
  • Comparative advertising - Emphasizes messages with direct or indirect promotional comparisons between competing brands
    • Used by firms whose products are not market leaders
    • Advertising by market leaders seldom acknowledge existence of competing products
advertising strategies1
Advertising Strategies
  • Celebrity testimonials
    • Can improve product recognition
    • A celebrity who endorses too many products may create marketplace confusion
advertising strategies2
Advertising Strategies
  • Retail advertising - Advertising by stores that sell goods or services directly to the consuming public
    • Cooperative advertising - Retailer shares advertising costs with a manufacturer or wholesaler
interactive advertising
Interactive Advertising
  • Two-way promotional messages transmitted through communication channels
    • Induce message recipients to participate actively in the promotional effort
  • Provides information throughout the purchase and consumption processes
creating an advertisement
Creating an Advertisement
  • Must create effective ads that increase sales and enhance the organization’s image
  • An ad needs to accomplish:
    • Educating consumers about product features
    • Enhancing brand loyalty
    • Improving consumer perception of the brand
advertising messages
Advertising Messages
  • Advertising campaign - Series of different but related ads that use a single theme and appear in different media within a specified time period
    • Example: Retail chain Target’s “Hello. . . . Good Buy” ads featuring the Beatles’ music
advertising appeals
Advertising Appeals
  • Fear appeals
  • Humor in advertising messages
  • Ads based on sex
developing and preparing ads
Developing and Preparing Ads
  • Goals
    • Gain attention and interest
    • Inform or persuade
    • Lead to purchase or other desired action
  • After conceiving an idea, ads must be refined from rough sketch to finished layout
creating interactive ads
Creating Interactive Ads
  • Advergames
  • Missiles
  • Keyword ads
  • Adware
  • Social network advertising
  • Narrowcasting
media selection and scheduling
Media Selection and Scheduling
  • Television
    • Mass coverage
    • Powerful impact on viewers, repetition of messages
    • Flexibility, and prestige
media selection and scheduling1
Media Selection and Scheduling
  • Radio
    • Advantages
      • Ability to reach people while they drive because they are a captive audience
      • Benefits include low cost, flexibility, and mobility
    • Disadvantages
      • Highly segmented audiences,
      • The temporary nature of messages
      • A minimum of research information compared with television
media selection and scheduling2
Media Selection and Scheduling
  • Newspapers
    • Advantages
      • Flexible
      • Intensive coverage for ads
      • Can refer back to newspaper ads
    • Disadvantages
      • Hasty reading
      • Relatively poor reproduction quality
media selection and scheduling3
Media Selection and Scheduling
  • Magazines
    • Consumer magazines and business magazines
    • Advantages
      • The ability to reach precise target markets
      • Quality reproduction
      • Long life
      • Prestige associated with some magazines
    • Disadvantage
      • Lack flexibility
media selection and scheduling4
Media Selection and Scheduling
  • Direct mail
    • Advantages
      • Ability to segment large numbers of prospective customers
      • Flexible
      • Detailed information
      • Personalization
    • Disadvantages
      • High cost per reader
      • Reliance on the quality of mailing lists
      • Consumers’ resistance
media selection and scheduling5
Media Selection and Scheduling
  • Outdoor advertising
    • Traditional - Billboards and painted displays
    • Transit advertising - Ads placed inside and outside buses, subway trains, commuter trains, and stations
media selection and scheduling6
Media Selection and Scheduling
  • Interactive Media
    • Internet and social media sites
    • Augmented reality - Virtual imaging can be incorporated into real-time video on a mobile phone
  • Other Advertising Media
    • Total Immersion’s D’Fusion system
    • Ads appear on T-shirts, on store flooring, in printed programs of live theater productions, and as previews on movie DVDs
media scheduling
Media Scheduling
  • Setting the timing and sequence for a series of advertisements
  • Influenced by a variety of factors
    • Seasonal sales patterns
    • Repurchase cycles
    • Competitors’ activities
marketing and nonmarketing public relations
Marketing and NonmarketingPublic Relations
  • Nonmarketing public relations -A company’s messages about general management issues
  • Marketing public relations (MPR) - Focused public relations activities that directly support marketing goals
  • Nonpersonal stimulation of demand for a good by unpaid placement of significant news
  • Many consumers consider news stories more credible than advertisements
cross promotion
  • Marketing partners share the cost of a promotional campaign that meets their mutual needs
ethics and promotional strategies
Ethics and Promotional Strategies
  • Advertising to children
  • Insertion of product messages in media programs without full disclosure
  • Use of cookies in online advertising
puffery and deception
Puffery and Deception
  • Puffery
    • Exaggerated claims of a product’s superiority
    • Use of subjective or vague statements that may not be literally true
  • The Uniform Commercial Code standardizes sales and business practices throughout the United States
ethics in public relations
Ethics in Public Relations
  • Issues include performing services for companies that produce unsafe products
  • The Public Relations Society of America’s Code of Professional Standards prohibits:
    • Promoting products or causes widely known to be harmful
promotional mix effectiveness
Promotional Mix Effectiveness
  • Marketers create a promotional mix by:
    • Blending advertising
    • Personal selling
    • Sales promotion
    • Public relations
  • Several factors can influence the effectiveness of promotional mix
nature of the market
Nature of the Market
  • Market’s target audience
  • Personal selling can be highly effective if the market has a limited number of buyers
  • Type of customer
nature of the product
Nature of the Product
  • Consumer products rely more on advertising than business products
  • Personal selling is important for shopping products
  • Personal and nonpersonal selling are important in the promotion of specialty items
stage in the product lifecycle
Stage in the Product Lifecycle
  • Introduction - Nonpersonal and personal selling
  • Growth and maturity - Advertising and personal selling
  • Maturity and early - Reduction in advertising and sales promotion
  • Advertising dominates for low-unit-value products
  • Personal selling involves high per-contact costs
  • A real barrier in implementing any promotional strategy is the size of the promotional budget
funds available for promotion
Funds Available for Promotion
  • Percentage-of-sales method
  • Fixed-sum-per-unit method
  • Meeting competition method
  • Task-objective method
evaluating promotional effectiveness
Evaluating Promotional Effectiveness
  • Direct sales results test
  • Indirect evaluation
measuring advertising effectiveness
Measuring Advertising Effectiveness
  • Cost per thousand impressions (CPM)
  • By measuring promotional effectiveness:
    • Organizations can evaluate different strategies
    • Prevent mistakes before spending money on specific programs
    • Improve their promotional programs
media and message research
Media and Message Research
  • Media research - Assesses how well a particular medium delivers a message
  • Message research - Tests consumer reactions to an advertisement’s creative message
media and message research1
Media and Message Research
  • Pretesting
  • Posttesting
    • Readership tests
    • Unaided recall tests
    • Inquiry tests
    • Split runs - Allow advertisers to test two or more ads at the same time
measuring public relations effectiveness
Measuring Public Relations Effectiveness
  • The simplest and least costly method
    • Whether the target audience received messages directed to them
    • Count the number of media placements and gauge the extent of media coverage
  • Conduct focus groups, interview opinion leaders
evaluating interactive media
Evaluating Interactive Media
  • Hits - User requests for a file
  • Impressions - Number of times a viewer sees an ad
  • Click-throughs - User clicks ad for more information
  • View-through - Measures response over time
evaluating interactive media1
Evaluating Interactive Media
  • Cost per impression - Relates the cost of an ad to every thousand people who view it
  • Cost per response (click-through) - Relates the cost of an ad to the number of people who click it
  • Conversion rate - Percentage of visitors to a Web site who make a purchase
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